Advisers don't understand ETFS - research

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The majority of advisers do not understand the structure of exchange traded funds (ETFs), research suggests.

According to Skandia's latest adviser confidence barometer polling more than 800 advisers, about two-thirds indicated they have little or no understanding of the structure of synthetic ETFs, with over half having little or no comprehension of asset-based ETFs. In addition, the research found more than 70% of advisers do not have any clients holding ETFs and, of those that do, the overwhelming majority hold just 5% or less of the asset type in their portfolio. This, said Skandia, illustrates that ETFs remain a niche investment solution suitable for a limited number of clients only. ...

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